Tuesday, June 21, 2011

Thems that own your debt owns you

Which is a leetle bit concerning when you look at the provenance of those in the mix when it comes to Europe.

Earlier in the year we saw that China was helping out, out of the kindness of their own hearts no less.

China has been increasing its holdings of European Union countries' debt, including Spanish government debt, since the outbreak of the European sovereign debt crisis,

Today their Foreign Minister made clear that they were a leetle bit concerned,

We have supported other countries, especially European countries, in their efforts to surmount the financial crisis," Fu said. "We have, for example, increased holdings of euro debt and promoted China-European Union trade."

Beijing has said in the past that it has bought Greek debt, but has never revealed the size of its investment.

Since euro zone debt worries first rippled through markets last year, China has repeatedly said that it has confidence in the single-currency region.

"We have hoped to help euro zone countries in overcoming the crisis, and this is also a measure that is beneficial to China's own economic development,"

Tpoday we learn that it isn't just kind Mr Wen Jiabao, who along with European debt is making Mr An Wei Wei disappear that is there for us. It is that nice man Mr Putin.

Pravda is crowing today,

Europe continues to drown in the swamp of the world financial crisis. The countries of the eurozone have taken tough measures to cut budget deficits, but the southern part of the continent faces a serious danger of bankruptcy. Russia appears to be an island of stability amid major wars between currencies. The IMF asked Russia for $15 billion to stabilize global markets - this is an outstanding event in the world of finance indeed. It seems that the fate of the joint European currency now depends on the Kremlin.

I mean seriously wouldn't it be better to just let Greece default and spare us the inevitable concerns of those two as best friends?